Professional Real Estate Investors always submit a cover letter along with their offer. If you are unfamiliar with this strategy, since this step is not standard practice known to lot of Real Estate Professionals. The cover letter set the stage well for negotiation and helped get the deal done on mutually beneficial terms where it may educate the seller for all other benefits which are built in the offer.
“Super eight magical powers of a cover letter can strengthen and reinforce your offer,” says, Navtaj Chandhoke, founder of Professional Real Estate Investors Group (PREIG) Canada, “It is like a laser guided missile hitting right on its target and getting the job done.”
An offer cover letter is a brief letter describing in plain English your likings, comparable and benefits for both parties. There are main eight reasons to use a cover letter, but the simple fact is that including a cover letter with your offer multiplies your chance of having that offer accepted.
There are multiple purposes for submitting a cover letter with each offer, but here are super eight magical powers of this tool.
1. Professional serious offer - Attaching a cover letter is not standard, so it will immediately make your offer stand out. In a hot market especially, it doesn't hurt to be professional and unique (in a good way).They know that you have done your homework.
2. Personal touch - Adding up few personal likings towards the property, the property sellers needs and asking the property sellers for all the benefits own the property can do magic, all the time. The cover letter will help establish a positive rapport with the property seller and set the tone for more harmonious negotiation.
3. Simple language -The legal terminology can be hard to understand. Cover letter provides the comfort of simple language. A confused mind says no, so a cover letter which explains the terms of your offer in simple language can be a powerful tool.
4. Needs and Wants - You can use your letter to let the vendor know what terms are important to you. If you need a certain closing date, seller financing, or multiple showings before closing, use your cover letter to make this known.
5. Benefits for the Sellers - Perhaps the greatest benefit of the cover letter are that you can tell the vendor why your offer is the best one. Whether you are giving them the closing date, price, or other terms they want, be sure to emphasize how your offer meets their needs and create a win-win deal for each party.
6. Hard core facts - Whether you want to mention comparable, point out some "scary" flaws in the property, or flatter the seller, you can use the cover letter to justify the price you are offering. If you are offering great terms and a slightly lower price, simply explaining this may have the vendor take your offer more seriously.
7. Capital gains deferral - If you are interested in seller financing, you may wish to offer that option to the property seller including Capital deferral option. The cover letter is a perfect place to offer this opportunity.
8. Clear and Precise information - As an investor you may be flexible on certain things such as the closing date which could be a point of contention with other buyers. If you can get the vendor let you know what is important to them, then you can use your creativity to create a win-win solution and get the deal done. Request open communication in your cover letter and try to use any info you receive to address the vendor's needs throughout the negotiation process.
Use the cover letter every time, every one in the process will be impressed with the results. You can even include cover letters with your counteroffers to aid in the negotiation process. Even if you decided not to proceed with transaction, you know your professionalism that you delivered above and beyond. Professional Real Estate investors who have proper apprenticeship and mentoring can write a professional letter, but cover letter could make all the difference.
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Navtaj Chandhoke is a Canadian-based real estate investor, speaker, author, educator and the founder of World Wealth Builders, leading RE investors education,mentoring, support and network of over 4545+ Canadian investors.
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